The document discusses the balanced scorecard (BSC) framework. It provides a brief history of the BSC, noting that it was developed by Kaplan and Norton in the 1990s to link strategy with performance. The BSC uses four perspectives - financial, customer, internal processes, and learning and growth. It integrates strategic objectives and measures across these perspectives to monitor organizational performance and ensure goals are met. The document then provides an example of how a company developed its strategy map and objectives across each BSC perspective, along with related measures and targets.

1. Presented By: Hani Zamani (MC112030)
Muhammad ALiif Ahmad (MC112098)
Nesa Nabipour (MC112075)
Nurhayati Othman (MC112100)
Sakirin Tam (MC112109)

2. Introduction
Is an framework for a strategic measurement and
management system Balance
Scorecard
an approach for driving
organizational improvement toward
pre-selected goals
integrated management system
components:
1) strategic management system
2) communication tool,
3) measurement system

3. History of BSC
1996
1990s
• Using the
• Robert Kaplan Balanced
and David Norton Scorecard as a
develop BSC Strategic
• links strategy with Management
performance System
1993 Currently
• Putting the • used by some of
Balanced the world's most
Scorecard to Work successful
companies

4. Component of BSC
Identify financial measures.
- return on capital employed
- operating income
- Customer retention - economic value added
- Customer satisfaction - Salve growth & cash flow
- Market share target segments
- Operation
where it can improve and create value - Internal value chain
- Employee satisfaction - Innovation
- Skill & moral - Sale service
- Employee retention.
- Real time system

5. Component of BSC

6. Component of BSC
Paul Niven’s analogy of the Balanced Scorecard is that of a tree

7. Phases of BSC
Kaplan and Norton, 2000
Planning Technical
Readiness Implementation Organizational Operation/Mo
Assessment • Leadership Team Integration
• Input Information dification
• Identify • Strategic Review
(mission/vision/str
(vision/strategies/ • Integrate • Data Update
Needs measures) /Existing
ategic plan) • Analysis
• Identify • Build Scorecards • Communicate
• Assign Strategies • Regular
Resources
to BSC • Set Targets and Objectives Reporting
• Confirm Perspectives Alert Levels • Assign • Refinement
Leadership
• Develop Strategy • Standardize Data Measurement
Commitment Definitions Data
Map
• Identify/Agree on • Presentation of Responsibility
Measures Data
• Develop
Implementation
Plan

9. 0 Zhang Shu Engineering.
0 Revenue of approximately 10 million US dollars per
year.
0 It is striving to maintain its viability in the highly
competitive engineering market.
0 It develops its business strategy along with objectives.

10. Perspectiv Strategy Objective
e
Financial • We will ensure that we use our resources and • Financial success.
people to maintain financial success.
Customer • We will meet or exceed our customers’ current • Customers impressed with quality of engineering
and future expectations and requirements with solutions and services.
innovative, high quality engineering solutions and • Attract new customers.
superior service, at a reasonable cost. • Retain current customers.
• Provide on-time delivery of solutions, goods and
services.
Internal • We will provide our engineering and • Achieve and maintain cutting-edge production
programming professionals and staff with an capability.
efficient and effective means to produce and deliver • Maintain or if necessary acquire well-functioning
high quality, innovative technical engineering facilities.
solutions and services in a timely fashion.
Innovation • We will attract and retain high calibre people and • Maintain a trained and knowledgeable workforce.
Learning promote an environment that develops their • Be on the cutting edge of engineering, computer
and technical, interpersonal, and business skills and and business technology.
Growth knowledge. • Develop business through innovative client
• We will strive to develop and maintain an active identification and acquisition
means of attracting new clients and a means to
expand our practice into related engineering and
computer development areas.
• We will strive to be aware and on the cutting-edge
of engineering and computer technology.

11. Perspective Measures Targets
Financial • Increased operating income. • Increase by 10%.
• Dollar amount of operating expenses. • Maintain expense levels.
Customer • Number of new customers. • Increase by 50%
• Number of repeat customers. • Increase 10%
• Number of requests for clarifications. • One per sheet
• Number of required revisions. • Decrease by 30%
• Number of missed project deadlines. • Reduce to zero
Internal • Software version currency. • Use latest software versions
• Number of departures from the firm’s • Reduce to zero
engineering standards.
• Use of templates. • Use at least 90%
• Number of common elements used. • Increase by 10%
Innovation • Amount of language training for each • 2 hours per week
Learning and employee. • 2 sessions year
Growth • Amount of business training for each • 5 per year
employee.
• Amount of technical training, seminars or • Increase by 10%
conferences attended for each employee.
• Number of price quotations from innovative
client sources.

12. 0 From both strategy map, we found that the company’s
targets is tied to measure and each measure is tied to
an objectives.
0 Other point is each objective is tied to at least one
element of company’s strategy.
0 The success of any balanced scorecard
implementation is depend in that critical connection.
0 The reason: Short-term strategy execution, and
strategy is the means of realizing the company’s
mission, values, and vision.

13. Advantages of BSC
1. Balance between financial and non-financial indicators of success
2. Balance between internal and external constituents of the
organization
3. Balance between lag and lead indicators of performance

14. Limitations
Cause-and-effect relations are not time-wise connected and not related in
reality
External environment and several interest groups are out of picture
Hierarchical top-down set-up creates problems in implementation
Unsuitability to unique or unhealthy enterprises

15. Thank You 
Q&A